Tuesday, August 21, 2012

SEC announces first whistleblower award

The U.S. Securities & Exchange Commission has made its first whistleblower award.  The SEC Whistleblower Office was established in August 2011, pursuant to the Dodd-Frank Act.

According to the SEC the whistleblower, who did not wish to be identified, will receive nearly $50,000, thirty percent of the amount collected from the perpetrators of a multi-million dollar fraud scheme. The information provided by the whistleblower resulted in a court's imposition of over $1 million in sanctions, although only $150,000 has been collected so far.  If additional money is collected from this defendant or other defendants in the matter, the whistleblower's award will increase as well.


According to the chief of the SEC’s Whistleblower Office, Sean McKessy, the office receives about eight tips a day. “The fact that we made the first payment after just one year of operation shows that we are open for business and ready to pay people who bring us good, timely information.”